Value Added Medical Products Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Value Added Medical Products

Introduction

Value Added Medical Products (VAMP) was founded in 1984 by Peter Williams when he met Alan Dean, a doctor who had designed a computer system for use by general practitioner (GP) practices. The system could store the key events in a patient's medical history and so help the GP during patient consultations. Additionally, the system could assist with the various administrative activities found in a GP practice. Williams and Dean also believed that there might be a long-term opportunity to use the medical record data collected on the GP systems for research purposes.

Problem Statement

Some of the most important problem and issues face by the Williams in his whole business is financing issue. Three-year of Business Company face these financial challenges at different stages. Just because company is busy, and the financial books are looking good that doesn't mean that company aren't in trouble, due to the financial issue this company faces many problems at every stage Williams need more system to for the data storage because the quantity and quality of data increases and client is also increased so he decided to build its company own database. If he wants to build his database, so he need finance for that data base. After gating the finance from different financiers he built the data base but he again faces many problems. The data sales though have been slow to take off, and the debt of the company is readily increases and companies were unable to pay their investors.

Analysis

Cash requirements are considered as a most important and critical issue in order to run a business successfully. Without a constant flow, every company and business will be in trouble. Businesses need money continuously. In 1985 VAMP had received £380,000 of start-up equity finance from management but after few months there is a shortage of system to sale these problems resulted in need for additional capital but at the end the issue however ended up because Williams did not want to suffer more, so he invests by his pocket. Meanwhile, there is one more problem face by the Williams that systems business has created a cash crisis because one of the investor company 3i had moved and handed over responsibility for his investment portfolio. Now 3i were no longer interested in putting further capital into Value Added Medical Products. After that company with interests in pharmaceutical wholesaling, the Williams planning to launch its own data business by giving away 2,000 free computer systems to GPs in return for access to the medical record data on the systems.

For own data base, he needs more investor, so Lazard Ventures agreed on an investment package of £2.85m) to fund VAMP's growth. The latter fund had been specifically set up to invest in the database and information related businesses to (or “intending to”) the possibility that Pearson might eventually acquire these businesses. Williams felt that once Value Added Medical Products cash position had been improved by the injection of new capital, Then Williams wants to expend their business through worldwide Williams had not fully anticipated the extent to which nearly all the general practitioner wanted to have a free system, and he wants to trade the data finance has been raised in order to handle the situation during negotiations with a trade buyer......................

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